Mon, May 21, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Pure alpha in Asia is tail risk in disguise

Wednesday, May 22, 2013

amb
Peter Douglas
From Komfie Manalo, Opalesque Asia:

After spending 15 years in Asia doing fund management business and analyzing the hedge funds industry in the region, Peter Douglas, head of the Singapore-based hedge fund research firm GFIA pte ltd said that he believes that what in Asia appears to be pure alpha is very often tail risk in disguise.

Douglas was reacting to the question posed to panelists in the latest 2013 Opalesque Singapore Roundtable, where do we find alpha and where do we find yield?" He stated, "We can find alpha, but how much are we prepared to pay for it? It’s fine pulling 5% per annum of alpha out of a strategy, but if your manager is taking 4% of that in various fees, then why bother?"

The 2013 Opalesque Singapore Roundtable was sponsored by Eurex, Taussig Capital and Eurofin Asia Group and took place on April 23rd in Singapore.

According to Douglas, the big risk in Asia is not volatility, politics or market risk, but liquidity. He added that in Asia, it is always provisional so any strategy that relies on high gross and low net is a risky one.

"And that’s often where we find the "alpha" managers playing,"......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. News Briefs - Warren Buffett: Target date funds aren't the way to go, Cambridge Analytica could be reborn under a different name[more]

    Warren Buffett: Target date funds aren't the way to go Planning for retirement can be complicated and stressful. This is why target date funds - funds that are managed based on when you expect to retire - are so attractive. Over time, the balance of stocks, bonds and cash evolve automati

  2. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  3. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven